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The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash balance according to the company's records at August 31, $27,210. 2. Cash balance according to the bank statement at August 31, $28,330. 3. Checks outstanding, $5,520. 4. Deposit in transit, not recorded by bank, $4,440. 5. A check for $340 in payment of an account was erroneously recorded in the check register as $430. 6. Bank debit memo for service charges, $50. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co. Bank Reconciliation August 31, 20Y6 Cash balance according to bank statement %2$ Adjusted balance Cash balance according to company's records Adjusted balance

The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. Cash balance according to the company's records at August 31, $27,210. 2. Cash balance according to the bank statement at August 31, $28,330. 3. Checks outstanding, $5,520. 4. Deposit in transit, not recorded by bank, $4,440. 5. A check for $340 in payment of an account was erroneously recorded in the check register as $430. 6. Bank debit memo for service charges, $50. a. Prepare a bank reconciliation, using the format shown in Exhibit 13. Creative Design Co. Bank Reconciliation August 31, 20Y6 Cash balance according to bank statement %2$ Adjusted balance Cash balance according to company's records Adjusted balance

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The image contains a list of items related to bank reconciliation processes, formatted as a flowchart or checklist. Each item is prefixed by "Add:", indicating steps or components to be included. Here is the transcription: 1. Add: Bank service charge 2. Add: Deposit in transit on August 31 3. Add: Error in recording check 4. Add: Outstanding checks This structure suggests adjustments that may be necessary during financial reconciliation, specifically for accounting or keeping track of bank-related transactions.
Transcribed Image Text:The image contains a list of items related to bank reconciliation processes, formatted as a flowchart or checklist. Each item is prefixed by "Add:", indicating steps or components to be included. Here is the transcription: 1. Add: Bank service charge 2. Add: Deposit in transit on August 31 3. Add: Error in recording check 4. Add: Outstanding checks This structure suggests adjustments that may be necessary during financial reconciliation, specifically for accounting or keeping track of bank-related transactions.
# Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. **Cash balance according to the company's records at August 31**: $27,210. 2. **Cash balance according to the bank statement at August 31**: $28,330. 3. **Checks outstanding**: $5,520. 4. **Deposit in transit, not recorded by bank**: $4,440. 5. **A check for $340 in payment of an account was erroneously recorded in the check register as $430.** 6. **Bank debit memo for service charges**: $50. ### Task: **a. Prepare a bank reconciliation, using the format shown in Exhibit 13.** --- **Creative Design Co.** **Bank Reconciliation** **August 31, 20Y6** | Description | Amount | |---------------------------------------------------------|----------| | Cash balance according to bank statement | $ | | - Less: Checks outstanding | $ | | + Add: Deposit in transit | $ | | **Adjusted balance** | $ | | Cash balance according to company's records | $ | | - Less: Erroneous check adjustment | $ | | - Less: Bank service charges | $ | | **Adjusted balance** | $ | --- This bank reconciliation worksheet helps in aligning the differences between the bank’s records and the company's records, ensuring accurate financial reporting and management.
Transcribed Image Text:# Bank Reconciliation The following data were accumulated for use in reconciling the bank account of Creative Design Co. for August 20Y6: 1. **Cash balance according to the company's records at August 31**: $27,210. 2. **Cash balance according to the bank statement at August 31**: $28,330. 3. **Checks outstanding**: $5,520. 4. **Deposit in transit, not recorded by bank**: $4,440. 5. **A check for $340 in payment of an account was erroneously recorded in the check register as $430.** 6. **Bank debit memo for service charges**: $50. ### Task: **a. Prepare a bank reconciliation, using the format shown in Exhibit 13.** --- **Creative Design Co.** **Bank Reconciliation** **August 31, 20Y6** | Description | Amount | |---------------------------------------------------------|----------| | Cash balance according to bank statement | $ | | - Less: Checks outstanding | $ | | + Add: Deposit in transit | $ | | **Adjusted balance** | $ | | Cash balance according to company's records | $ | | - Less: Erroneous check adjustment | $ | | - Less: Bank service charges | $ | | **Adjusted balance** | $ | --- This bank reconciliation worksheet helps in aligning the differences between the bank’s records and the company's records, ensuring accurate financial reporting and management.
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